South Korea. File Image / Pixabay
Suppliers in South Korea have already begun building their stockpiles of low sulfur IMO2020 grade products, says S-Oil.
The new global 0.50% sulfur cap for marine fuel comes into force from January 1, 2020, and many expect demand for the lower sulfur products to kick in during late Q3 and early Q4 of this year.
The refiner says the new rules will help to strengthen refining margins in the comping quarters, Reuters reports.
“Refining margins will strengthen from the fourth quarter, driven by inventory build-up demand for compliant fuels in advance of IMO 2020,” the report quoted a S-Oil source as saying.
Despite generally positive comments on IMO2020 preparedness from the refining and supply side, a number of stakeholders on the buyers side remain uncertain over the availability of the new fuels.